Basics of General Economics - Economic Reforms in India
Exam Duration: 45 Mins Total Questions : 30
Economic Policies followed by India, immediately after independence, were________ in nature.
- (a)
Conservative
- (b)
Liberalised
- (c)
Globalised
- (d)
None of the above
In the pre-liberalization period, dominant position was given to______ Sector in India
- (a)
Private
- (b)
Public
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
In the pre-liberalization period-
- (a)
Full support was given to Private Sector in all industries
- (b)
Industries were reserved exclusively for Public sector
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
In the pre-reforms period (i.e. before 1991), control was exercised over import of-
- (a)
Consumer Goods
- (b)
capital Goods
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
In the pre-reforms period (l.e, before 1991), there were restrictions in respect of-
- (a)
ForeignEquity Partidpation in Indian Industries
- (b)
Import of Foreign Technology
- (c)
(a) but not (b)
- (d)
Both (a) and (b
All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.
- (a)
National Debt was nearly 60% of the GNP of India
- (b)
Inflation crossed double digits
- (c)
Foreign Reserves were maintained at a very high level
- (d)
None of the above
The signs of crisis which created the need for Economic Reforms in 1991 were
- (a)
Low Forex Reserves
- (b)
Huge National Debt
- (c)
Inflation
- (d)
All of the above
Which of the following statements is against Privatization?
- (a)
Privatization will help reducing the burden on exchequer
- (b)
It will help the profit making public sector units to modernize and diversity their business.
- (c)
It will help in making public sector units more competitive
- (d)
None of the above
__________refers to relaxation of previous Government restrictions usually in areas of social and economic policies.
- (a)
Liberalisation
- (b)
Privatisation
- (c)
Globalisation
- (d)
Disinvestment
Disinvestment means selling of -
- (a)
Public Investment to a Private Entrepreneur
- (b)
Private Investment to a Public Sector Unit
- (c)
Either (a) or (b)
- (d)
Neither (a) nor (b)
For Disinvestment purposes, the Government has adopted the Equity Offer -
- (a)
To Retail Investors through domestic Public Issues
- (b)
In Overseas Markets through issue of Global Depository Receipts (GDRs)
- (c)
Both (a) and (b)
- (d)
either (a) nor (b)
As a consequence of economic reforms, the MRTP Act 1969 was replaced by competition Act in year__________
- (a)
2001
- (b)
2002
- (c)
2003
- (d)
2004
As part of Banking Sector Reforms in 1991, CRR and SLR were-
- (a)
Increased
- (b)
Reduced
- (c)
Maintained at constant level
- (d)
None of the above
Which of the following statements is an argument in favour of Globalisation?
- (a)
Improve the allocative efficiency of resources
- (b)
Increase the degree of competition
- (c)
Reduce the Capital-Output Ratio
- (d)
All of the above
Which of the following statements is an argument in favour of Globalisation?
- (a)
Re-distribution of political power
- (b)
Improvement of Service Sector
- (c)
Helps Developed Economies more than the Developing Economies
- (d)
Superior economic and financial clout of the Multi-National Corporations
Main steps towards Globalisation do not include
- (a)
Liberalisation of Imports
- (b)
Opening up of Foreign Capital
- (c)
Exchange Rate Adjustment
- (d)
Non-Convertibility of Rupee
In India, Foreign Direct Investment (FDI) is allowed
- (a)
At a standard rate of 26%
- (b)
At a standard rate of 49%
- (c)
In different levels i.e. 26%,49%, 51%, 74% and even up to 100%
- (d)
In different levels i.e. 26%, 49%, 51%, 74% but not 100%
In the context of Commercial Banks, PLRrefers to
- (a)
Permissible Liquidity Ratio
- (b)
Possible Liquidity Rate
- (c)
Prime Lending Rate
- (d)
Progressive Lending Rate
As part of Banking Sector Reforms in 1991, PLRi s-
- (a)
Within the purview of the Banks
- (b)
Set by the RBI
- (c)
Treated as the minimum rate
- (d)
All of the above
India has not achieved full convertibility of the Rupee in -
- (a)
Current Account
- (b)
Capital Account
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
Foreign Companies are allowed to do various activities in India. Identify which of the following is not permissible.
- (a)
Repatriate their Profits to their Country of Origin
- (b)
Use their Trademarks in India and carry on any activity of a trading, commercial or industrial nature
- (c)
Deal in immovable property in Indiaupto a specified extent
- (d)
Operate rail transport services in India
Which of the following institution performs the function of short term credit?
- (a)
IMF
- (b)
World Bank
- (c)
WTO
- (d)
All of these
The main objective of the World Trade Organisation is to secure among others -
- (a)
A general agreement among common market countries on technical training and mutual prices of traded goods.
- (b)
The maintenance of intellectual property rights and patent rights of member countries.
- (c)
An improvement in the USA's terms of trade in the next decade.
- (d)
A reduction in tariffs through negotiation, elimination of import quotas and globalisation of international trade.
__________ has been founded to act as permanent watch dog on the International Trade.
- (a)
IBRD
- (b)
ADB
- (c)
WTO
- (d)
IMF
Which of the following is mismatch?
- (a)
IBRD - giving short-term loans for development
- (b)
IMF - provides finance to correct disequilibrium in balance of payments
- (c)
RBI - controls credit in India
- (d)
WTO - generally forbid use of quantitative restrictions on trade
100% FDI allowed in-
- (a)
Drugs & Pharmaceuticals
- (b)
Courier service
- (c)
Hotels and Tourism
- (d)
All of the above
Fiscal Policy is concerned with-
- (a)
PublicRevenue,Public Expenditureand Public Dept
- (b)
Controlling the BOP situation
- (c)
Controlling the Banks
- (d)
None of the above
Which of the following is a positive impact of Economic Reforms on the Indian Economy?
- (a)
Improvement in work culture
- (b)
Increase in quality and cost consciousness
- (c)
Increase in Value-Added Exports
- (d)
All of the above
Which of the following is a positive impact of Economic Reforms on the Indian Economy
- (a)
Focus on BrandBuilding in an increasingly competitive market place
- (b)
Shift from labour-intensive to capital-intensive methods of production
- (c)
Stress on quality and R & D
- (d)
All of the above
Reduction of CRR/ SLR & dismantling of Administered Interest Rate Structure are both parts of
- (a)
Industrial Reforms in India
- (b)
External Sector Reforms in India
- (c)
Land Reforms in India
- (d)
Banking Reforms in India